BMO Investments Inc. has announced changes to a wide-ranging number of funds.
Among the changes, portfolio managers from affiliate BMO Asset Management Inc. (BMOAM) will replace third-party managers at some funds.
In addition, the firm announced changes to investment strategies and proposed changes to the investment objectives of several funds.
Portfolio manager changes
BMOAM will replace Lazard Asset Management (Canada) Inc., the current portfolio manager of BMO Global Absolute Return Fund, and Global Alpha Capital Management Ltd., the current portfolio manager of BMO Global Small Cap Fund, and will assume all portfolio management duties in relation to both funds.
The investment strategies of each fund will be changed to reflect the investment style of BMOAM. These changes will be effective on or about July 12.
In addition, effective July 26, Barrantagh Investment Management Inc. will no longer act as portfolio manager for any portion of BMO Canadian Diversified Monthly Income Fund and BMO Global Diversified Fund.
Similarly, Lazard Asset Management (Canada) Inc. will no longer act as portfolio manager for any portion of BMO Global Diversified Fund. There will be no changes to either fund’s investment objectives or strategies as a result of these portfolio manager changes.
Proposed changes to investment objectives
Subject to obtaining all necessary unitholder and regulatory approvals, BMO Investments is proposing to change the investment objectives of three BMO mutual funds:
> BMO Floating Rate Income Fund: The investment objectives of the fund will be change to enable the fund to invest primarily in floating rate debt securities issued from domestic and foreign companies.
> BMO U.S. Dollar Equity Index Fund: The investment objectives of the fund will be changed to widen the scope of how exposure is achieved to include physical securities and ETFs.
> BMO Global Science & Technology Fund:
The investment objectives of the fund will be changed to achieve a high level of total return by investing primarily in dividend-yielding common and preferred shares of companies from around the world
Pending investor approval at special unitholder meetings, scheduled for July in Toronto, the proposed changes will take effect in July
In addition, BMO Asset Management Inc. will replace BMO Asset Management Corp. (BMO AM Corp.) as portfolio manager of BMO U.S. Dollar Equity Index Fund and Guardian Capital LP will replace BMO AM Corp. as portfolio manager of BMO Global Science and Technology Fund.
The names of BMO U.S. Dollar Equity Index Fund and BMO Global Science and Technology Fund will also be changed.
Changes to investment strategies
Effective May 31, the investment strategies of BMO Bond Fund will change in order to allow greater flexibility to invest in fixed-income securities issued by corporations, BBB rated fixed-income securities and non-investment grade fixed-income securities. These changes will provide the portfolio manager of the fund with a better opportunity to maximize performance.
BMO Investments Inc. and BMO Asset Management Inc. are both members of Bank of Montreal Financial Group (TSX:BMO).